Reversal Candlesticks

James16 on this forum advocates using reversal bars. However, for me they are
hard as hell to pick them off a chart esp. while the market is moving and if you are monitoring multiple charts at the same time. I like candlesticks better and have read that a hammer and hanging man are reversal candlesticks. Do these two indicators give as good of a signal of a possible reversal as a reversal bar?
If not, what are the best candlesticks that indicate a likely reversal?

I like to pay attention to doji or dojii when they appear on Day charts.

PipBull

The Hammer (For a Long) and Hanging Man (For a short) are very good reversal signals, especially if followed by a higher low (For a long) or lower high (For a short). The spike on either shows that there has been a rejection of price. Some also consider The Hammer at a high and a Hanging Man at a low also good reversal signals, though I do not look for these.

An Engulfing Candle is also a strong reversal indicator. That is a candle which for a long reversal, starts lower than the previous short bearish candle and finishes higher. Some suggest that the Engulfing Candle has to take out both shadows of the preceeding candle, others are just happy with the body (open and close).

All 3 signals should be backed up by other reason/s to enter the trade, perhaps divergence or a bounce of a significant level, such as a Pivot or Fib level.

I am not sure that you can compare a Hammer / Hanging Man with a Reversal Bar.

Have a read of the price action primer here:

http://www.enthios.com/Lessons/Tradi...riceaction.htm

While this is shown in bars, it works for candles too.

Try and read Steve Nison's two books on Candles, both in the public domain on the net.

Check out:

http://www.litwick.com/indicators/bullish.html

http://www.litwick.com/indicators/bearish.html

Hag